Replies to This Discussion

Permalink Reply by Phil Hanner on February 11, 2011 at 8:27am

I had the same thing happen. PMI was actually the ones insisting on prom note in my case. Went directly to PMI and they would not relent - Chase and PMI insisted on promissory note for $30K. The seller would not sign (both lost their jobs, left the USA, and now she is pregnant with no health insurance), the property will be sold at the sheriff's auction. Chase will end up with the property and will get $15K less than my contract plus they will spend an additional $18k to dispose of the asset.

 

33K now, or a promise of 30K in the future. They chose 33 less. Moronic.

Permalink Reply by Steve Early on February 11, 2011 at 8:37am

Hi Kelly:

This is fairly common among lenders. The approval letter you have from Chase obviously does not forgive the balance of the debt as evidenced by their response to your phone call. I find it a little strange that there isn't some language in the approval letter indicating they reserve the right to pursue the borrower for the balance or something similar to that.

That said, what they are now telling you is;  if the seller wants a new letter in which they promise to waive the balance the seller has to pay for it. They are putting a price tag on full debt forgiveness and the seller is being given a choice.They can take their chances on being pursued after the short sale, or they can put it behind them for a price.

If they really do not have any money, Chase probably already knows that because they have access to their bank statements.They may have to borrow the money, sell something, or find some means to get the cash Chase is asking for to forgive the balance.

You state the seller "won't sign a prom note". Why? Because they don't want to, or because they have no income? I don't know your seller's situation, but I have seen people who spend $180/month on cable TV services and then tell me they can't afford $83/month for a prom note. Nonsense! If you want to guarantee full debt forgiveness, get basic cable for 5 years and be done with it.

This is not something you are going to be able to negotiate away with Chase - you might be able to suggest less cash and a bigger note, but their fee for forgiveness is on the table to stay.

 

Good luck with it.

Permalink Reply by Janaya Goselin on February 19, 2011 at 3:30pm

I am dealing with this too, Actually you can get a deficiency waiver with a contribution from other sources too. I just got a waiver by agreeing to 2000 contribution and it is able to be make by agents, buyers or anyone. keep pushing, they well do it. My example is for a significant loss too.